Industries Qatar Q P S C posts a net profit of QR 734 million for the three-month period ended 31 March 2026

FOR IMMEDIATE RELEASE

• Earnings per share (EPS) of QR 0.12 for 1Q-26 compared to QR 0.16 for 1Q-25.

• 1Q-26 results impacted due to on-going regional conflict on the Group's operations, sales and marketing, logistics, and distribution.

• The Group's revenue of QR 4.2 billion remained largely unchanged compared to same period last year, mainly due to higher average selling prices which offset lower sales volumes.

• The Group's EBITDA reached QR 1.3 billion with an EBITDA margin of

  ~32%, lower compared to EBITDA of QR 1.5 billion and EBITDA margin of ~37% mainly due to higher operating costs.

• The Group's liquidity position remains strong with total cash and bank balances of QR 8.5 billion, after paying H2-2025 dividend of QR 2.7 billion.

  Doha, Qatar; 29 April 2026: Industries Qatar ("IQ" or "the Group"; QE Ticker: IQCD), today announced a net profit of QR 734 million for the three-month period ended 31 March 2026, representing a decrease of 26% compared to the same period of last year. Operational performance updates

  Key Performance Indicators	1Ǫ-26	1Ǫ-25	Var (%) [1Q-26 v. 1Q-25]	1Q-26	4Q-25	Var (%) [1Q-26 v. 4Q-25]
  Production (MT' Million)	3,722	4,432	-16%	3,722	4,632	-20%
  Utilization Rates (%)	77%	92%	-	77%	96%	-
  Average Reliability Factor (%)	80%	98%	-	80%	99%	-

  In line with our previous announcement, the Group stopped and reduced production of certain products. Accordingly, the overall production for the period is down compared to the previous quarter and the same period last year. Production utilization and average reliability factors have also decreased due to the higher unplanned shutdowns arising from the announced stoppage and reduction of production notably in March.

  The Group continued to ensure its commitment to operational excellence and reliable operations while ensuring unwavering focus on HSE continued while managing plant operations during this period.

  Financial performance updates - 1Q-26 vs 1Q-25

  Key Performance Indicators	1Q-26	1Q-25	Var (%)
  Average Selling Price (USD / MT)	531	490	8%
  Sales Volumes (MT'000)	2,201	2,378	-7%
  Revenue (QR' billion)	4.2	4.1	0%
  EBITDA (QR' billion)	1.3	1.5	-12%
  Net Profit (QR' billion)	0.7	1.0	-26%
  Earnings per share (QR)	0.12	0.16	-26%
  EBITDA (%)	32%	37%	-

  Note: Revenue and EBITDA reported based on non-IFRS based proportionate consolidation

  The Group reported a consolidated net profit of QR 0.7 billion for the three-month period ending 31 March 2026, a decline versus 1Q-25 mainly due to lower sales volumes and higher operating costs partially offset by higher average selling prices. The Group's revenue for 1Q-26 remained largely consistent with 1Q-25, as the lower sales volumes were largely offset by higher average selling prices.

  Analysis of IQ's net earnings - 1Q-26 vs 1Q-25
  
  

  Amounts in QR millions)

  
  
  
  
  

  The Group's financial performance for the three-month period ended 31 March 2026 was largely attributed to the following factors:

  • Product prices

  Blended average product prices improved against the same period last year and contributed positively toward the Group's net income. This improvement was primarily driven by bullish global fertilizer and steel markets whilst the ongoing regional conflict led to uncertainty and drove energy and commodity prices up.

• Sales volumes

  Sales volumes for the current period decreased marginally versus same period of last year, largely driven by lower production and shipping constraints amid ongoing regional uncertainties.

• Operating cost

Operating costs for the period have increased, primarily driven by unfavorable inventory changes (mainly in the fertilizer and steel segments), increased depreciation and higher fixed overheads, partially offset by lower volume driven variable costs (primarily feedstock / raw materials).

Note: Revenue and EBITDA reported based on non-IFRS based proportionate consolidation

(Amounts in QR millions)

During 1Q-26, the Group's earnings decreased notably compared to 4Q-25. The decrease was mainly due to lower sales volumes and absence of a one-off other income of QR 222 million relating to reversal of impairment within the steel segment with respect to previously mothballed assets. On a comparable basis (after adjusting for this one-off item), the adjusted net income for the current period has increased marginally by ~4% versus 4Q-25, largely due to higher average selling prices.

Revenue for 1Q-26 has decreased significantly against 4Q-25 mainly due to lower sales volumes amid presence of regional uncertainly impacting shipping and logistics. Production volumes have also declined

in line with the announced production stoppage and reduction due to the ongoing regional conflict. Conversely, average selling prices increased amongst all segments driven by supply-side economics, mainly shipping and logistic bottlenecks.

Note: Cash and bank balances have been reported based on non-IFRS based proportionate consolidation

The Group's financial position continues to remain strong, with cash and bank balances at QR 8.5 billion as at 31 March 2026, after accounting for a dividend payout relating to the financial year H2-2025 amounting to QR 2.7 billion and routine capital expenditure payments of ~QR 0.4 billion. Currently, the Group has no long-term debt obligations. The Group generated positive operating cash flows1 of ~QR 1.1 billion, while invested ~QR 0.4 billion in capital expenditure thereby generating modest free cash flow of

~QR 0.7 billion.

Note: The above figures have been reported based on non-IFRS-based proportionate consolidation

Segmental performance analysis - 1Q-26 vs 1Q-25

The petrochemicals segment reported a net profit of ~QR 4.0 million for 1Q-26, significantly down versus 1Q-25. This decrease was largely linked to lower revenue and a decline in gross margin. Revenue declined because of lower sales volumes amid lower production during the later part of the quarter and shipping and logistics disruption associated with the ongoing regional conflict, together with lower average selling prices. Blended average selling prices for the segment moderately declined amid capacity additions, weaker margins for end producers and users, and capacity rationalization, partially offset by selective demand from certain segments like packaging, infrastructure, and plastics.

1 Reported based on non-IFRS based proportionate consolidation.

Segmental performance analysis - 1Q-26 vs 4Q-25

On a quarter-on-quarter basis, segment's net earnings declined significantly on the backdrop of lower sales volumes. Sales volumes have declined notably due to supply and logistics constraints and lower production volumes. Selling prices, however, increased due to tightened supply conditions and increased demand.

Segmental performance analysis - 1Q-26 vs 1Q-25

The fertilizer segment reported a net profit of QR 495 million for 1Q-26, a moderate decline against the same period last year. This decline in net profit was primarily driven by lower gross margin due to increased operating costs. Operating costs increased mainly due to unfavorable inventory changes during the period coupled with increase in average feedstock costs. The segment's revenue for the reporting period improved mainly due to effect of higher average selling prices, partially offset by lower sales volumes. Average selling prices improved at the backdrop of stronger demand from key agricultural economies, supply-constraints and export restrictions. Sales volumes were down moderately due to lower production and the ongoing shipping and logistical challenges due to regional uncertainties.

Segmental performance analysis - 1Q-26 vs 4Q-25

On a quarter-on-quarter basis, net profit within the segment marginally decreased owing to lower revenues stemming from a notable decline in sales volumes due to ongoing supply and logistics constraints and lower production within the segment. Selling prices, however, have increased moderately compared to the previous quarter mainly due to restricted supply from the GCC region, which remains a key supplier of global fertilizer. Sales volumes, however, declined marginally due to lower production and limited access to shipping and logistics due to ongoing regional conflict.